Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

From InsightSquared
Quote in Market Research

You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.

More SaaS + Software Stats

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

54% treat upselling and add-on sales as high priority

The median annual unit churn for SAAS companies was 10% in 2016

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

How To Make Pricing A Constant Process In Your Organization

More Market Research Stats

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

Cloud application services (SaaS) to reach $126 billions by the end of 2021

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

SaaS solutions have the highest security features with 95% security failures due to human error

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence